FTSE 100: Brexit delay can’t stop index seeing red
Top UK stocks edged lower on Thursday despite Brussels extend Brexit deadline to October 31 as UK homebuilders are unable to offset exporters losses with investors fears of a global economic slowdown worsen.
The FTSE 100 edged lower on Thursday despite the UK Prime Minister Theresa May securing a Brexit delay that saw British homebuilders’ stocks rally, but not enough to offset losses suffered by miners as investors fears of a global economic slowdown rise.
The blue-chip index fell 0.1% on Thursday morning, although clawed back some of its losses later in the day. Meanwhile, the more domestically focused FTSE 250 rose as by as much as 0.84%.
FTSE 100 edges lower as miners fall prey to falling copper prices
Miners helped drag the FTSE 100 lower on Thursday with the sector suffering from weaker global demand amid ongoing trade tensions between the US and China, the world’s largest copper consumers.
Fresnillo and Polymetal International saw their stocks fall as much as 7% and 2.5% respectively on Thursday.
Meanwhile, several other blue-chip stocks traded ex-dividend, putting added pressure on the index. ITV, Standard Life and Aviva all falling between 2.2% and 4.7%.
Brexit delay not enough to stop FTSE 100 falling lower
The EU granting the UK a six-month Brexit extension arguably helped stop the FTSE 100 losing more ground, but it wasn’t enough to offset the negative sentiment for UK stocks.
‘The problem for traders and investors is that the extension to Oct. 31st does not bring us any closer to a resolution. The cliff edge has simply been pushed back,’ Markets.com analyst Neil Wilson told Reuters.
‘We are in a period of peak uncertainty for UK politics and that won’t help investors pile back into UK assets,’ he added.
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